Dr Johnson Asiama, Governor of the Bank of Ghana, has reported a sharp drop in short-term treasury bill rates during the first two months of 2026, attributing the trend to easing inflation expectations and improved fiscal discipline. He highlighted a notable decline in yields on the benchmark 91-day Treasury bill in February.
At the 129th MPC press conference held in Accra on Wednesday, March 18, he explained that average bank lending rates had fallen to 19.2 per cent in February 2026, compared to 30.1 per cent in the same month last year, which helped boost private sector credit growth.
He pointed out that decreases in both food and non-food costs caused headline inflation to drop from 5.4% in December 2025 to 3.3% in February 2026. As a result of lessened underlying pricing pressures, core inflation also decreased.
Inflation expectations remained stable across consumers, businesses, and the financial sector, supported by tight monetary policy, cedi appreciation, and better food supply over the past 14 months.
As a result of the stricter monetary policy stance, growth in monetary aggregates continued to decelerate in February 2026. In February, reserve money shrank by 0.5% year over year, while a year before, it had grown by 68.8%.
Additionally, he stated that during the same time period, the rise in the money supply decreased to 16.0 per cent from 33.1 per cent.
